The Czech economy is thriving but boosting skills and productivity and transitioning to a low-carbon productive model is vital to sustainable and inclusive growth

Babis Czech Republic.jpg

From left to right: Mr Joseph MUSCAT, Maltese Prime Minister; Mr Andrej BABIS, Czech Prime Minister.

This article is brought to you in association with OECD.

The OECD Economic Survey of the Czech Republic says average living standards are gradually improving, with per capita GDP at 82% of the OECD average in 2017.

Growth is projected at 3.8% in 2018 and 3.2% in 2019, with labour shortages contributing to a deceleration from the high 2017 growth rate of 4.6%.

Other challenges include rising house prices, a rapidly ageing population and low wages, which are picking up but will need to increase faster for living standards to fully converge with OECD levels.

“The Czech economy is booming, but labour and skills shortages could create a bottleneck that would cramp future growth,” said OECD Secretary-General Angel Gurría, presenting the survey in Prague alongside Prime Minister Andrej Babiš. “Upgrading and updating professional skills would be a win-win for inclusive growth as it would help improve job quality, raise wages and advance wellbeing, ensuring that all Czech citizens benefit from economic progress.”  (Read the full speech).

Greater flexibility in work hours and more affordable childcare could help ease the labour squeeze by increasing the share of women in work, particularly those with young children.. The pressures of an ageing society could be reduced by linking the retirement age to life expectancy and broadening the financing of health and old-age care. The Czech Republic is among the fastest ageing countries in Europe with the ratio of retirees to workers set to rise from 28% in 2016 to a peak of 56% in 2058. Ageing-related spending makes up 43% of the government budget and could rise to 75% without action. The Survey recommends better hospital management, primary care coordination and pay incentives to improve the financial sustainability of the health system.

A new Environmental Performance Review of the Czech Republic, also presented by Secretary-General Gurría during his visit to Prague, shows the country’s progress in reducing greenhouse gas emissions and replacing some of the coal that dominates the electricity mix with nuclear and renewables. It says, however, that a greater political commitment to a low-carbon economy will be needed to meet long-term climate goals, including the Paris Agreement objectives.

The Czech economy is one of the most carbon intensive in the OECD due to its large heavy industry sector and its reliance on coal. The share of renewables used for electricity is the fourth lowest in the OECD. Air quality is another challenge, with premature deaths from ambient air pollution around twice the OECD average at 633 per million inhabitants.

The Review recommends the Czech Republic align its energy policy with its climate policy and the Paris Agreement on climate change. The level and application of energy taxes should also be adjusted to impose a meaningful price on carbon. Action should also be taken to divert waste from landfills and increase urban density for sustainable development.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

Quicker freezing and confiscation of criminal assets in the EU

Do you dare to go to China?

Greece’s future solely in the hands of Tsipras; he can direct the poor country any way he likes

20th EU-China Summit in Beijing, 16/07/2018

Do the giant banks ‘tell’ Britain to choose a good soft Brexit and ‘remain’ or else…?

China is sending science students to live with rural farmers – and crop yields are skyrocketing

More ‘political commitment’ needed urgently for HIV prevention: UNAIDS chief

Greece bailout programme: Full agreement after marathon negotiations on debt relief between IMF and Eurozone

State aid: Commission finds Luxembourg gave illegal tax benefits to Engie; has to recover around €120 million

Parliament: Last compromise on bank single resolution mechanism

UN chief welcomes agreement by rival leaders in South Sudan, as a step towards ‘inclusive and implementable’ peace

Egypt urged to free prominent couple jailed arbitrarily since last June: UN rights office

Towards the Rise of the United States of the Atlantic?

VW emissions scandal: While U.S. car owners are vindicated, Europe still unable to change its laws and protect its consumers

What do Europeans believe about the crisis and the possible way out?

Conflict and climate change challenge sustainable development effort: UN report

Parliaments can be pillars of democracy and defenders of human rights, says UN chief on International Day

Have central banks missed the exit train?

Germany openly seeks more advantages for its banks

GSMA Mobile 360: Connecting Cities, Connecting Lives, Connecting Europe

MEPs call on EU countries to end precarious employment practices

The EU learns about fishing and banking from tiny Iceland

Facebook/Cambridge Analytica: MEPs pursue personal data breaches probe

The Eurogroup offered a cold reception to IMF’s director for Europe

Infinite Oath

EU-Russia relations: the beginning of a warmer winter?

Innovation for a smarter world: ITU Telecom World 2018

UNICEF appeals for end to ‘war on children’ in Syria and Yemen

A ship with containers at the port of Rotterdam. (Copyright: European Union. Source: EC - Audiovisual Service. Photo: Robert Meerding)

US follows the EU in impeding China market economy status in WTO

The new North America trade deal USMCA punishes German cars

Draghi hands over to banks €77.7 billion more

Treaty prohibiting nuclear weapons marks first anniversary, but still lacks sufficient numbers to become law

EU’s Bank signs € 150 million loan to India as part of record investment in clean energy

Medical Doctors in Industry 4.0: pure science fiction

Two major EU projects falter; the Schengen Agreement now freezes and Eurozone fails to resolve the Greek enigma

Why do medical students need to emigrate to become doctors in 2017?

Back to school: Schoolchildren to receive milk, fruits and vegetables at school thanks to EU programme

South Eurozone urgently needs fairer distribution of taxation burden

Draghi’s top new year resolution: Quantitative Easing

Samsung’s profits fall as cheaper smartphones gain market share

5 ways to go green in your own kitchen

The Syrian knot cannot be cut without devastating consequences

European Employment Forum 2013 and not European Unemployment Forum 2014

ILO: Progress on gender equality at work remains inadequate

Parliament sets conditions on EU-China investment deal

The Americans are preparing for the next financial crisis

Foreign direct investments the success secrete of Eurozone

Girls groomed for suicide missions fight back against the extremists of Lake Chad

The 28 EU leaders unable to start a relevant debate on migration and Brexit

5 ways to fast-track the transition to a carbon neutral world

YO!Fest back in Strasbourg for the 2nd edition of the European Youth Event – 20-21 May 2016

Consumers suffer three defeats

Syria: UN Humanitarian Coordinator calls for unimpeded access from within the country

End of plastic water bottles at European Parliament

Why banks escape from competition rules but not pharmaceutical firms

Eurozone economy desperately needs internally driven growth

Can We(esterners) ever understand (the) Chinese

“Decisions taken in the coming weeks will shape Europe’s experience of the internet”, Joe Mcnamee from EDRi says live from European Business Summit 2015

The true EU unemployment rate may have soared to 21.9%

OECD sees global growth moderating as uncertainties intensify

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s